BULLION

Gold closed lower due to profit taking on Tuesday while extending last week's trading range. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are overbought but remain neutral to bullish signalling that sideways to higher prices are possible near-term. If it extends this month's rally, the reaction high crossing is the next upside target. Closes below the 20-day moving average crossing would signal that a short-term top has been posted.

Silver closed lower due to profit taking on Tuesday but remains above the 20-day moving average crossing. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI remain bullish signalling that sideways to higher prices are possible near-term. If it extends the rally off this month's low, the reaction high crossing is the next upside target. Closes below the 10-day moving average crossing would temper the near-term friendly outlook.

U.S. STOCK MARKET INDICES

DJI closed lower due to profit taking on Tuesday as it consolidates some of this month's rally. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are overbought but remain neutral to bullish signalling that sideways to higher prices are possible near-term. SPI closed lower due to profit taking on Tuesday as it consolidates some of this month's rally. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are overbought but remain neutral to bullish signalling that sideways to higher prices are possible near-term. NDI closed lower due to profit taking on Tuesday as it consolidates some of this month's rally. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are overbought but remain neutral signalling that sideways prices are possible near-term.

ENERGY

Crude Oil closed sharply lower on Tuesday due to profit taking as it consolidates some of this month's rally. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are oversold but remain neutral to bearish signalling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing would confirm that a short-term top has been posted.

Natural Gas closed lower on Tuesday as it extends last week's decline. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are oversold but remain bearish signalling that sideways to lower prices are possible near-term. If it extends the decline, the 87% retracement level of the December-January rally crossing is the next downside target.

COFFEE

Coffee closed higher on Tuesday and tested the 62% retracement level of the 2008-decline crossing as it extended this month's rally. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are overbought but remain neutral to bullish signalling that sideways to higher prices are possible near-term. If it extends this month's rally, the 75% retracement level of the 2008-decline crossing is the next upside target.

HY Markets
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